Poverty

As a result, when all incomes rise, but those of the rich rise by more than those of the poor, poverty increases, even though the poor have more than they had before. Poverty is also relative for another reason: somebody who is regarded as poor in one country might be considered wealthy in another.

Although the level of prosperity is higher in Germany than in most other European countries, the proportion of poor people is below the European average. The reason for this lies in state subsidies. With social assistance, a safety net for the elderly and a minimum unemployment benefit even for the long-term employed, Germany has effective instruments against material poverty.

However, upward mobility can only be achieved if those affected find a job. In Germany this is particularly difficult for single parents and immigrants. If more people are to be able to get by without public assistance, two things must happen. Firstly, it must be made easier to combine employment with bringing up a family. Secondly, joining the workforce must become a more attractive option. Low earners who continue to receive the lowest level of unemployment benefit as an income supplement should be allowed to retain more of the extra money they earn.